Perre & Ors v Apand Pty Ltd

The case of *Perre & Ors v Apand Pty Ltd* concerned a claim brought by potato growers against a seed potato supplier. The growers alleged that the supplier's negligence in supplying contaminated seed potatoes caused them economic loss. The dispute centred on whether the supplier owed a duty of care to the growers in circumstances where the harm suffered was purely economic and not consequential upon physical injury to person or property. The matter was heard by Gaudron J in the Supreme Court of South Australia.

The central legal issue before the court was whether a duty of care could be established in favour of the plaintiffs for pure economic loss arising from the defendant's negligent conduct. Specifically, the court had to consider the established principles of negligence and their application to situations involving economic harm, particularly where there was no direct physical damage to the plaintiffs' property or person, but rather a loss of market access and profitability due to contamination.

Gaudron J applied the principles of negligence, considering the established categories of liability for pure economic loss. Her Honour examined the foreseeability of the harm, the proximity between the parties, and the policy considerations relevant to imposing a duty of care. The court considered the potential for indeterminate liability and the need to avoid imposing an undue burden on the defendant. Ultimately, Gaudron J found that a duty of care was owed by the defendant to the plaintiffs in these circumstances, recognising that the economic loss was a reasonably foreseeable consequence of the defendant's negligent supply of contaminated seed potatoes.